A correction is generally defined as any stock that is at least 10% off a recent high. If we look at a price performance over the past 200-days, 42% of all the stocks in the MSCI World Index are in a correction. Higher than you might have thought, right?
Regionally, MSCI Pacific has the greatest percentage of stocks in a correction at 46% and MSCI Europe has the fewest at 36%. For North America, 43% of stocks are in a correction but worryingly, this number has slowly been grinding high all year.
Lastly, the percentage of stocks that are fully in a bear market (down over 20%) is just 15% in the MSCI World Index.
Regionally, MSCI Europe have the fewest stocks in a bear market at just 11%. In MSCI Pacific, 14% of stocks are in a bear market and in MSCI North America, nearly one out of five stocks are in a bear market.